BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI’s recovery continued into the end of the week to close at the 1,520 level, boosted by the release of the country’s sanguine exports data and gains on telco stocks.
Conditions elsewhere were also positive with many lower liners and broader market shares also tipping higher.
As a result, market breadth stayed positive but traded volumes continue to thin, falling to just 2.0 billion shares as most market players were still on the sidelines.
There should be further near-term gains in the holiday shortened session ahead of the Lunar New Year break as the Malaysian equity market takes cue from strong gains on Wall Street last Friday which will provide the main impetus amid the lack of domestic leads.
This should help the key index to fortify its position above the 1,520 level as it also looks to sustain its recovery after its recent steep falls albeit market participation is set to remain thin due to lack of following.
This could see limited upsides as follow through buying interest may also be absence with the key index possibly finding the 1,525 level a near-term hurdle.
Further above, the resistance is at 1,530 points while the supports are at 1,516 and the 1,508 levels respectively.
Malacca Securities Research
The FBM KLCI notched higher on Friday, continuing its rebound move for the third session on the back of bargain hunting activities.
We believe the key index will be extending its rebound as US stocks wrapped up the volatile week with strong gains.
Nevertheless, upside might be capped as investors may trade cautiously ahead of the Chinese New Year holiday and focus on earnings season moving forward.
On the commodities market, both the crude palm oil (CPO) and crude oil prices rallied, trading above RM5,600/metric tonne and US$90/barrel mark respectively.
The FBM KLCI stayed on an upbeat note as the key index closed below the SMA50 level after re-testing it. Technical indicators are turning mildly positive where both the MACD Histogram and RSI are recovering albeit in the negative region.
Support is set at 1,505 while the resistance is located at 1,530-1,570. – Jan 31, 2022
